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VXF vs. VMBS
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VXF vs. VMBS

Last updated Jun 4, 2026

VXF (Vanguard Extended Market ETF) and VMBS (Vanguard Mortgage-Backed Securities ETF) are both exchange-traded funds - VXF is a Mid Cap Blend Equities fund tracking the S&P Completion Index, while VMBS is a Mortgage Backed Securities fund tracking the Barclays Capital U.S. MBS Index. Both are passively managed. Over the past 10 years, VXF returned 12.08%/yr vs 1.35%/yr for VMBS. At a correlation of -0.02, they often move in opposite directions. VXF charges 0.05%/yr vs 0.04%/yr for VMBS.

Performance

VXF vs. VMBS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Extended Market ETF (VXF) and Vanguard Mortgage-Backed Securities ETF (VMBS). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, VXF achieves a 13.78% return, which is significantly higher than VMBS's 0.66% return. Over the past 10 years, VXF has outperformed VMBS with an annualized return of 12.08%, while VMBS has yielded a comparatively lower 1.35% annualized return.

VXF

1D
-1.02%
1M
4.75%
YTD
13.78%
6M
12.61%
1Y
28.88%
3Y*
19.75%
5Y*
6.53%
10Y*
12.08%

VMBS

1D
-0.15%
1M
0.33%
YTD
0.66%
6M
0.85%
1Y
6.93%
3Y*
4.60%
5Y*
0.48%
10Y*
1.35%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VXF vs. VMBS - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VXF
Vanguard Extended Market ETF		13.78%11.40%16.89%25.51%-26.52%12.31%32.45%27.96%-9.34%18.06%
VMBS
Vanguard Mortgage-Backed Securities ETF		0.66%8.36%1.70%5.34%-11.90%-1.28%3.76%6.19%0.91%2.47%

Correlation

The correlation between VXF and VMBS is 0.30, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.30

Correlation (3Y)
Calculated over the trailing 3-year period

0.26

Correlation (5Y)
Calculated over the trailing 5-year period

0.20

Correlation (10Y)
Calculated over the trailing 10-year period

0.08

Correlation (All Time)
Calculated using the full available price history since Nov 24, 2009

-0.02

The correlation between VXF and VMBS shifts across timeframes, from -0.02 (all time) to 0.30 (1 year), reflecting how their relationship changes across market environments.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard Extended Market ETF

Vanguard Mortgage-Backed Securities ETF

Often compared with VXF:
VXF vs. VOOVXF vs. VTIVXF vs. VBVXF vs. VOVXF vs. FZIPXVXF vs. VOTVXF vs. IJR
Often compared with VMBS:
VMBS vs. SPMBVMBS vs. BNDVMBS vs. VGITVMBS vs. JMBSVMBS vs. GNMAVMBS vs. VOOVMBS vs. FSEC

Return for Risk

VXF vs. VMBS — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VXF
VXF Risk / Return Rank: 5050
Overall Rank
VXF Sharpe Ratio Rank: 4848
Sharpe Ratio Rank
VXF Sortino Ratio Rank: 4747
Sortino Ratio Rank
VXF Omega Ratio Rank: 4444
Omega Ratio Rank
VXF Calmar Ratio Rank: 5656
Calmar Ratio Rank
VXF Martin Ratio Rank: 5757
Martin Ratio Rank
VMBS
VMBS Risk / Return Rank: 4848
Overall Rank
VMBS Sharpe Ratio Rank: 4545
Sharpe Ratio Rank
VMBS Sortino Ratio Rank: 4848
Sortino Ratio Rank
VMBS Omega Ratio Rank: 4545
Omega Ratio Rank
VMBS Calmar Ratio Rank: 5252
Calmar Ratio Rank
VMBS Martin Ratio Rank: 5151
Martin Ratio Rank
The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VXF vs. VMBS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Extended Market ETF (VXF) and Vanguard Mortgage-Backed Securities ETF (VMBS). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

VXFVMBSDifference
Sharpe ratioReturn per unit of total volatility
1.69
1.59

+0.10

Sortino ratioReturn per unit of downside risk
2.38
2.38

0.00

Omega ratioGain probability vs. loss probability

1.29

1.29

0.00

Calmar ratioReturn relative to maximum drawdown

2.84

2.59

+0.25

Martin ratioReturn relative to average drawdown

10.07

8.68

+1.39

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VXF vs. VMBS - Sharpe Ratio Comparison

The current VXF Sharpe Ratio is 1.69, which is comparable to the VMBS Sharpe Ratio of 1.59. The chart below compares the historical Sharpe Ratios of VXF and VMBS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

VXFVMBSDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.69

1.59

+0.10

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.29

0.07

+0.22

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.54

0.25

+0.29

Sharpe Ratio (All Time)

Calculated using the full available price history

0.46

0.46

0.00

Drawdowns

VXF vs. VMBS - Drawdown Comparison

The maximum VXF drawdown since its inception was -58.03%, which is greater than VMBS's maximum drawdown of -17.47%. Use the drawdown chart below to compare losses from any high point for VXF and VMBS.

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Drawdown Indicators

VXFVMBSDifference

Max Drawdown

Largest peak-to-trough decline

-58.03%

-17.47%

-40.56%

Max Drawdown (1Y)

Largest decline over 1 year

-10.21%

-2.68%

-7.53%

Max Drawdown (3Y)

Largest decline over 3 years

-26.92%

-7.65%

-19.27%

Max Drawdown (5Y)

Largest decline over 5 years

-36.39%

-17.12%

-19.27%

Max Drawdown (10Y)

Largest decline over 10 years

-41.72%

-17.47%

-24.25%

Current Drawdown

Current decline from peak

-1.02%

-1.33%

+0.31%

Average Drawdown

Average peak-to-trough decline

-9.55%

-2.49%

-7.06%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.87%

0.80%

+2.07%

Volatility

VXF vs. VMBS - Volatility Comparison

Vanguard Extended Market ETF (VXF) has a higher volatility of 4.87% compared to Vanguard Mortgage-Backed Securities ETF (VMBS) at 1.62%. This indicates that VXF's price experiences larger fluctuations and is considered to be riskier than VMBS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VXFVMBSDifference

Volatility (1M)

Calculated over the trailing 1-month period

4.87%

1.62%

+3.25%

Volatility (6M)

Calculated over the trailing 6-month period

12.44%

3.16%

+9.28%

Volatility (1Y)

Calculated over the trailing 1-year period

17.22%

4.37%

+12.85%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

22.33%

6.77%

+15.56%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

22.29%

5.40%

+16.89%

VXF vs. VMBS - Expense Ratio Comparison

VXF has a 0.05% expense ratio, which is higher than VMBS's 0.04% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VXF vs. VMBS - Dividend Comparison

VXF's dividend yield for the trailing twelve months is around 1.02%, less than VMBS's 4.19% yield.

PositionTTM20252024202320222021202020192018201720162015
VMBS
Vanguard Mortgage-Backed Securities ETF		4.19%4.20%3.94%3.31%2.35%1.02%2.01%2.77%2.72%2.16%2.10%2.12%
VXF
Vanguard Extended Market ETF		1.02%1.14%1.09%1.27%1.15%1.13%1.07%1.30%1.66%1.25%1.43%1.35%

Frequently Asked Questions

VXF and VMBS have a correlation of 0.30, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VXF has higher volatility (4.87%) compared to VMBS (1.62%). In terms of maximum drawdown, VXF dropped -58.03% vs VMBS's -17.47%.

On 10-year performance, VXF leads with 12.08% vs 1.35% for VMBS. On fees, VMBS is cheaper at 0.04% per year. On volatility, VMBS has been the lower-risk option at 1.62%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, VXF has performed better with a 12.08% return vs 1.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VMBS is cheaper with a 0.04% expense ratio, compared with 0.05% for VXF.

VMBS has the higher dividend yield at 4.19%, compared with 1.02% for VXF.

VXF is categorized as Mid Cap Blend Equities, while VMBS is Mortgage Backed Securities. VXF tracks S&P Completion Index, while VMBS tracks Barclays Capital U.S. MBS Index. Their fees differ too: 0.05% for VXF and 0.04% for VMBS.

VXF currently has the higher Sharpe Ratio (1.69 vs 1.59), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.

Portfolio Optimizer

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